A second lien that forecloses takes the legal rights of possession from whoever owns the property but the second lienholder's position is still subject to the first lien.

there's your liquid cash since you own them all. but also you can take out equity loans from your cars and borrow against them for some cash on hand for the what if's. or you can just go through a bank, there's a million ways to finance a deal. if i were in your position i would be crunchng numbers on homes and if the numbers work then go for it. paralysis by analysis i find is the dumbest thing ever. yes sometimes if you analize something someone else may buy it. but i wouldnt buy anything without feeling completely comfortable with the numbers. remember it's the exit strategy thats most importantl. we all dont want to end up buying a home we cant sell and just that liability our money away. so do your analysis.i dont know how much help what i said is, but dont let anyone tell you that you're going too slow because if anything doesnt make sense then i wouldnt do anything until you feel comfortable with what you're doing.

Hey... interest only or not, the important thing is that you need to be able to have positive cash flow.

You surely want to create positive cash flow.

so much has been written about keeping a positive mindset - you could literally get lost just thinking about it.i think what's most important for alot of investors just starting out is to approach everything you do with a an attitude that screams -I'M GOING TO DO THIS AND MAKE IT MAKE ME MONEY!

With positive cash flows between $500-$1000 a month, it is hard to re-coup on a property that is $800k (even if it is worth $1MM).

Apparently they pay him 5%/month on the $150,000 he invested and the $7500 he gets pays for his piti, house expenses and he still has $1500/month positive cash flow on his owner occupied house.

I have an investment in Wyoming that is leased by the US Government and provides a positive cash flow of ~$3000 per month.

What you would do is have the buyer sign an "assignment of contract" which will outline that they will taking over the buyer position in the original contract for a certain fee.

After you have worked on the property it may have a FMV of 150,000 so they would give an 80% loan for 120,000 and look at it as having a 30,000 equity position to cover any loss.